There are solutions

The five biggest areas of concern when it comes to inflation

Inflation has also exacerbated the problem of poverty.

(Bild: Brenek Malena)

Inflation in Austria is still above the target value of two percent. Many people are being crushed by rising costs and can afford to live less and less. The Krone took a look at the five biggest problems and how they could be solved.

"Life must become affordable again," demand the Austrians. For much of the past few years, Austria has actually been one of the leaders in terms of inflation. Even in August, only two Western European countries were ahead of us.

Inflation rates are currently falling across Europe. However, this is not making goods and services cheaper, but merely slowing down the rise in prices. The fact is that the price level remains high. This remains a challenge for many Austrians.

Energy
Many households have been hit by high energy bills over the past two years. This is because the war in Ukraine caused the cost of electricity and gas to explode. Although these have fallen again, costs are still 60 percent higher compared to 2019 - i.e. before the pandemic - according to the energy price index.

Although the government reacted and introduced an electricity price brake, this does not cushion the high cost of heating and does not help to afford the prices of goods that have become more expensive as a result of the energy price rally. The next government will not be able to rely solely on further easing on the energy markets. Rather, dependencies must be reduced and price regulations extended.

(Bild: AP ( via APA) Austria Presse Agentur/APA/dpa/Marijan Murat)

Housing
Housing is a basic need, but has increasingly become an object of speculation. A generational conflict arose because wage levels could not keep pace with housing prices. Affordable housing was neglected and prices in private housing were driven up: More than 10 euros rent per square meter, on average!

But even across all apartments, the monthly rent for an average apartment is already 650 euros. According to the survey, 80 percent therefore see the cost of their own four walls as a burden, with one in five even feeling a heavy burden due to rents.

However, people are even being forced into the rental market, as owning their own home is currently a much more distant prospect for many. Although around two thirds would like to live in their own home, this often remains a pipe dream due to stricter credit rules and tight budgets. "Create affordable housing and no real estate speculators," is the demand.

The negative example of Benko and Gusenbauer is all too familiar. No new taxes, but investment incentives for the creation of affordable housing need to be pushed forward in the long term.

(Bild: Krone KREATIV)

Food
Food is increasingly becoming a burden. From milk and bread to vegetables and meat: Austrians are paying an average of 20 percent more for their weekly groceries this year than two years ago. The price increase is particularly high for cheap foods: according to the AK, people are paying a whopping 43% more for these than in 2021.

The announced price database for food remained a government promise. The government could not bring itself to reduce VAT. However, this would only be a symptom relief and not sustainable. In order for there to be more affordable food on the shelves, agriculture needs fair framework conditions. Domestic food needs to be protected from cheap imports. EU agreements, on the other hand, open up the domestic market to such imports.

Gastronomy
But it's not just in the supermarket that Austrians have to dig deeper into their pockets, but also in the restaurant trade. Whether for a pint of beer, a cappuccino or a schnitzel, eating out has become a luxury for many. At the moment, gastronomy and tourism are even fueling the price increase particularly strongly. Recently, the inflation rate was twice as high as general inflation. A relief for catering businesses would be to reduce the burden on labor. After all, wages make up a large part of the costs in pubs, cafés and hotels.

Fuel prices remain high.

(Bild: Jauschowetz Christian/Christian Jauschowetz)

Car traffic
Petrol, diesel, electric cars - it has become more expensive everywhere. Yet many people are dependent on their cars: After all, for two thirds of Austrians, the car is indispensable in everyday life. The fact that fuel prices are falling again is only a limited reason to breathe a sigh of relief, as the increases over the past few years have been above average, including in all areas relating to cars.

While the general price level has risen by 22 percent compared to April 2021, the cost of operating and maintaining a car has increased by 26 percent. Specifically, the cost of a tire service increased by 39 percent, an hour at a car valet by around 28 percent and an oil service by around 25 percent. The next government will have to find a healthy balance between more ecologization and affordable mobility. Otherwise the acceptance of climate measures will also be lost ...